7 Things to look out when investing in Singapore Property

7 Things to look out when investing in Singapore Property – Singapore, the bright spark of South East Asia. One of the fastest growing economies in the world for the past 50 over years after it’s independence.

The economy of the island nation is robust and strong and with a strong and capable workforce, the real estate prices of the nation has been steadily climbing and climbing fast.

Singapore is a small nation with very limited land. This makes Singapore a premium location for property investment.

Singapore is also a growing nation that needs to bring in more people to keep its growing economy going along. So the requirement for rental units will always be there.

The prices of real estate has outstripped the growth of income of its residents and to prevent a bubble from forming, the government of Singapore started introducing taxes such as the Additional Buyer Stamp Duty (ABSD) and many other taxes to slow down the growth to prevent a potential bubble.

We will be looking into the few things that you as a Singapore property investor will need to explore.

Let us now start on article on “Things to look out when investing in Singapore Property”.


1. Location, Location, Location

When it comes to any form or place to get your property investment done, the first thing is location.

Location decides the appreciation and this is also something that will affect the rental potential of your investment property.

When you buy a property, be sure to make a check on where the closest train station or bus stop is and also to check that it is located somewhat near to employment centres.

The fact that is it located within a couple of minutes where people will be hired and also preferably where expatriates work will mean a higher chance and higher quantum of rental.

This makes a big difference for you if you are buying for own stay though.

Location is a big factor when you want to resell this properties and depending on what are your target markets, you should look very very closely to the location of the property and nearby amenities before making the decision to go ahead with the purchase.

2. Mortgage Loan Rates

The prices of the property can be one of the key indicators for your investment but also at the same time, one should consider the Mortgage Loan rates of the current climate or location.

The fact is that the property mortgage loan rates can fluctuate a lot and affect how your investment will perform over time.

If the mortgage loan rates are really high, you will start to see your potential gain actually eaten up by your interest rates.

You will end up paying a lot more interest than you should and you will end up not getting the capital gain or rental yield you had expected prior to this investments.

For you to definitely save up on your cash amounts, and also to pay lower interest, you could consider consulting a Singapore Mortgage Loan Broker.

For those who have been owning properties for awhile, you may also want to do your Mortgage Refinancing with a Singapore Home Loan Broker.

3. Loan to Value Ratio (LTV)

When you are going to buy a property, do not forget about the qualification of the property loan or mortgage loan.

This is also one thing that the government of Singapore has set out to reduce speculation of property in Singapore.

To prevent Singaporeans from getting into a debt trap, the government came up with the Loan to Value ratio when one wants to buy anything on credit. For example credit card usage to cars and now also property.

You can read more about Loan to Value Ratio here.

4. Additional Buyers Stamp Duty (ABSD)

To prevent the property market in Singapore from over heating, the government of Singapore has also come up with the Additional Buyers Stamp Duty so that anyone or company that owns multiple properties will have to pay extra taxes on top of their current fees.

This means that they will have to pay a lot more if they plan to invest in Singapore properties.

This is to slowdown the bubble like growth of property prices in Singapore.

You can read more about Additional Buyers Stamp Duty here.

5. Seller Stamp Duty

To prevent speculations and also to prevent a bubble from forming in the Singapore property market, the Singapore government has come up with methods to slow down the sale and purchase of residential property in Singapore.

The Seller Stamp Duty is one of this methods.

If you are trying to sell your property within the first 3 years of buying the property, you get taxed between 4 to 12% of the property selling price. Which will put a big dent in anyone who is trying to flip Singapore properties.

So if you are someone who doesn’t have such a long horizon in owning properties in Singapore, then you should not consider buying in Singapore.

6. Singapore Master Plan

This basically falls back onto point number 1 which is location, but not just location. You want to find out what is really happening in that area for the next 5 to 10 years or even 20 years. If you are someone wants to make rental money and income over a period of time from capital gains, the use of the neighboring location should be of some concern.

Singapore URA Master Plan is what many real estate agents will read up and also want to learn more about.

If you are an investor in Singapore property, you should find out if there are any chances for their location to get build to something bigger or taller or they are going to tear it down for other purposes?

If you know that an en-bloc is likely to come, you can actually get a good payout for you to move to somewhere else.

Find out more about the Singapore URA Master Plan here.

7. Your Nationality

If you’re a foreigner, you are limited to condominiums and landed houses on Sentosa Island.

That does not really give you much of a choice other than to decide whether to go for core locations in town area or near new work centers in the east and west of Singapore.

But as a Singaporean, you have quite an option of properties, starting from the Housing Development Board (HDB) flats, to condiminiums and landed houses across Singapore.

For most people, they will start out with a BTO when they are young and work their way up to a condominium and then a landed house.

For BTOs and New launch HDBs, the gains can be quite a healthy amount if you manage to get one with good location, for example those at Pinnacle@Duxton saw very healthy gains, being positioned nicely in Tanjong Pagar region.

Landed houses are also great investments for those that can afford them. As land is scarce in Singapore and Singaporeans boasting the most millionaires per capita in the world, the standard of living expected by the rich will grow and those that can afford will prefer to buy a landed house.


Avant Mortgage is Singapore’s leading Mortgage Loan Brokerage service.

We are able to give you the best rates for your home loan in Singapore and also able to give you some advice on how to save on your loans overall.

Having a great strategy is definitely better than none.

When you are planning to make a long term and large sum investment such as property, it is best to have your team of the most experienced consultants to guide you and help you to maximize the gains you have from buying a property in Singapore.

We look forward to working with you on your property investment journey.

7 Things to look out when investing in Singapore Property